The Nigerian National Petroleum Company Limited’s Group CEO, Mele Kyari, has been urged by the Socio-Economic Rights and Accountability Project (SERAP) to explain the loss of more than N825 billion and $2.5 billion designated for oil income and refinery reconstruction.
The request comes after the Federation’s Auditor-General’s 2021 annual report revealed grave issues with the NNPCL’s handling of public monies.
On November 27, 2024, SERAP released an audit that revealed several financial irregularities involving unaccounted-for or missing monies.
This includes the reported N825 billion that was taken out of crude oil sales in 2020 and 2021 to pay for refinery maintenance.
The office of the Auditor-General has raised concerns that these funds might have been misappropriated and has demanded a comprehensive investigation and money recovery.
In a letter dated January 4, 2025, SERAP cited the Auditor-General’s report and asked Kyari to “account for and explain the whereabouts of the alleged missing N825bn and $2.5bn meant for refinery rehabilitation and other oil revenues.”
The continuous mismanagement of public funds “has undermined Nigeria’s economic development, trapped the majority of Nigerians in poverty, and deprived them of opportunities,” according to Kolawole Oluwadare, Deputy Director of SERAP, in a press release titled “Account for Missing N825bn, $2.5bn for Refinery Repairs and Others: Invite EFCC, ICPC.”
The organisation demanded greater transparency and the transfer of those in charge of the purported financial mismanagement to the Independent Corrupt Practices and Other Related Offences Commission and the Economic and Financial Crimes Commission for investigation and potential prosecution.
In addition to applauding Kyari’s public invitation to former President Olusegun Obasanjo to visit Nigeria’s refineries, SERAP highlighted the significance of enlisting the EFCC and ICPC to guarantee refinery activities are transparent.
The letter demanded that, following Nigeria’s Constitution and international anti-corruption pledges, “you formally invite former President Olusegun Obasanjo to tour Nigeria’s refineries and extend your invitation to the EFCC and ICPC to monitor the operations of the refineries.”
Other examples of financial irregularities were also detailed in the letter, such as the more than N204 billion in inexplicable deductions from oil royalties in 2021, the N83.66 billion taken out of a sinking fund account, and the more than N343 billion taken out of crude sales for pipeline maintenance.
Furthermore, SERAP maintains that all unpaid royalties, income, and bridging allowances should be recovered and sent to the Federation Account, and the Auditor-General pointed out disparities in these amounts.
The letter stated, “We would appreciate it if the suggested actions are taken within seven days of this letter being received and/or published.”
In the public interest, “SERAP will take appropriate legal action to compel the NNPCL to comply with our requests if we have not heard from you by then.”
President Bola Tinubu, Chief of Staff Femi Gbajabiamila, Attorney General Lateef Fagbemi, ICPC Chairman Musa Aliyu, EFCC Chairman Olanipekun Olukoyede, and the chairs of the Senate and House of Representatives Public Accounts Committees were also copied on the letter.
